Federal judges in Kansas, Missouri stop student loan relief plan
The next phase of the Biden administration’s student loan debt relief plan has been put on ice.
WASHINGTON (NEXSTAR) – The next phase of the Biden administration’s student loan debt relief plan has been put on ice.
U.S. District Judge Daniel Crabtree in Kansas and U.S. District Judge John Ross in Missouri both issued rulings in cases brought by the state attorneys general.
In Kansas, Judge Crabtree allowed some but not all of the proposed relief to go through. Students who borrowed $12,000 or less will have the rest of their loans forgiven if they make 10 years’ worth of payments, instead of the standard 25. But students who had larger loans cannot have their monthly payments lowered and their required payment period reduced from 25 years to 20 years.
In Missouri, Judge Ross’ order says that the U.S. Department of Education cannot forgive loan balances going forward but could lower monthly payments.
The rulings are seen as wins for Missouri Attorney General Andrew Bailey and Kansas Attorney General Kris Kobach.
“Only Congress has the power of the purse, not the President,” Bailey said in a statement.
In a statement, White House press secretary Karine Jean-Pierre said the Biden administration “will never stop fighting for students and borrowers — no matter how many roadblocks Republican elected officials and special interests put in our way.”
It is still possible that borrowers see changes in their payments, however this injunction will prevent the intended number of borrowers affected.
The Associated Press contributed to this report.